Company Interview / Why Angus is buying Wisetech & Xero

Key points:

Strong US earnings underpin Geddes’ constructive stance on global equitiesConcern centres on rising US bond yields and the need for fiscal restraintFirmly in the commodity supercycle camp, with a focus on copper and agriculturePrefers quality SaaS and ASX tech such as WiseTech Global and Xero over euphoric AI chip names

Angus Geddes from Fat Prophets sets out a bullish view on global equities despite higher bond yields, geopolitical risk and near-term volatility. Geddes points to the strongest US earnings season since 2021, particularly across the S&P 500 and smaller mid caps, and suggests markets are consolidating rather than rolling over. He argues the key risk is the US bond market, with the 10‑year yield near 4.6% increasing pressure on Washington to rein in spending and secure a resolution on oil and Middle East tensions.

Geddes is wary of euphoric AI semiconductor names and prefers beaten‑down US SaaS software stocks, noting Microsoft $MSFT is trading around its lowest price‑to‑earnings multiple in five years. He expects a “risk‑on” equity environment to continue if bond yields stabilise. On commodities, Geddes is firmly in the supercycle camp, citing strength across grains, soft commodities, fertilisers and base metals, with particular emphasis on copper and food security.

Locally, Geddes favours a diversified copper and precious metals basket via BHP (ASX:BHP), Rio Tinto (ASX:RIO), Evolution Mining (ASX:EVN), Newmont (ASX:NEM) and Capstone Copper (ASX:CSC). He also highlights GrainCorp (ASX:GNC) among agricultural names, and has been adding to WiseTech Global (ASX:WTC) and Xero (ASX:XRO), viewing the tech shakeout as largely played out.